Econ HW




1) Define MPC(marginal propensity to consume) and MPS(marginal propensity to save)



2) Define multiplier effects, based on Keynesian Fiscal policy.



3) When economy falls into a recession, what kind of fiscal policy is needed? Give a specific tool of fiscal policy.



4)Discuss the long run effects of “Crowding out” due to a short run expansionary fiscal Policy.



5) Treasure Hunt: 


a) Go to (Links to an external site.)Links to an external site.  web site. At Bookshelf of Arnold economics of 11th edition, click Economics Course Mate of Economics(11th ed) by Roger A Arnold . Then, click “select chapter” for Ch 11  and try Ch11: Fiscal policy  to get  access to ” Video Office hours  ”  left menu bar.     Summarize the contents of “Video Office hours”. (3 points)


b) Summarize the contents of “Working with Diagrams” of Ch  8 , 9 ,  10  and 11 at (Links to an external site.)Links to an external site.


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